If the business use of listed property is 50% or less of the total usage,the alternative depreciation system must be used.

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According to IRS regulations, if the business use of listed property (such as cars and computers) is 50% or less of the total usage, the alternative depreciation system (ADS) must be used to calculate the depreciation deduction for tax purposes. This is because the IRS assumes that property used for both business and personal purposes will have a longer life and lower depreciation rate than property used exclusively for business purposes.

If the Business Use of Listed Property Is 50% or Less